I really hope all the people who support this bill will still be happy in January.

With one stroke of the pen, we now will have changed the whole financial structure of the Health Insurance Industry.

Before this mess was signed into law, 55% of premiums go to care reimbursement, 45% goes to admin costs.

To break it down even further, 10% overall goes to the cash reserve funds (mandated by fed & state regs) in case of catastrophic costs. If you do not hold to these figures, then you are put on the ‘possibly unsustainable’ list. And then audited every year to make sure you are in compliance.

So, the final tally is:

55% Reimbursement

35% Admin (also used to pay for compliance, taxes, fees, advertising, salaries, etc. Only 2-3% of this percentage is profit)

10% emergency reserves

Now, the new split is 85/15. By law.

So in case you missed it, now the reimbursement rate will be 85% of premiums. This will also have to pay out for the now-covered pre-existing conditions.

15% will be for admin costs. This will also have to cover all of the new 40% tax on premiums that the company will have to pay.

Since the company cannot raise rates until the first of the year to cover these additional costs this year, expect your premiums to go up between 200-300%.

Do not expect your rates to go down, either. All of these mandates must be paid for by someone.

That someone will be the person, company, or corporation that buys the policies.

Apparently, the government can now tell people what insurance they must buy, when to buy it, and what coverage they must have.

Right now, (with no pre-existing conditions) a policy that has a small co-pay, $5 mil cap on benefits per person, drug coverage, hospitalization, vision, and hearing, costs (on industry average) $10,000 per year for a family of four.

Just ask yourself one question: Who in their right mind will pay upwards of $30,000 per year for a basic family policy?